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Plantation companies maintain cautious stance
calendar26-01-2023 | linkThe Star Online | Share This Post:

24/01/2023 (The Star Online), Petaling Jaya - Plantation companies are maintaining a cautious outlook for 2023, on the back of lower crude palm oil (CPO) and palm kernel (PK) prices and unresolved labour issues.

 

Chin Teck Plantations Bhd executive chairman Goh Wei Lei said average selling prices of CPO have been declining steeply.

 

“The financial performance for financial year 2023 (FY23) is expected to decline with the drop in CPO and PK prices from the historical high levels,” he said in the company’s 2022 annual report.

 

 

PublicInvest Research in a recent report said it expects a weaker earnings outlook for Chin Teck Plantations in FY23, given the steep correction in CPO prices.

 

“The group currently maintains a strong war chest with a total cash level of RM395mil with a debt free structure,” it said.

 

Kuala Lumpur Kepong Bhd (KL Kepong) chairman R.M. Alias believes the coming year will be a challenging one for the company’s cash flow.

 

“This is because our committed major oleochemicals expansions in Indonesia, Malaysia, China and Europe are currently on schedule. A cash outflow of RM1.5bil will be required over the coming two years.

 

Chin Teck Plantations Bhd executive chairman Goh Wei Lei said average selling prices of CPO have been declining steeply.

 

“The financial performance for financial year 2023 (FY23) is expected to decline with the drop in CPO and PK prices from the historical high levels,” he said in the company’s 2022 annual report.

 

PublicInvest Research in a recent report said it expects a weaker earnings outlook for Chin Teck Plantations in FY23, given the steep correction in CPO prices.

 

“The group currently maintains a strong war chest with a total cash level of RM395mil with a debt free structure,” it said.

 

Kuala Lumpur Kepong Bhd (KL Kepong) chairman R.M. Alias believes the coming year will be a challenging one for the company’s cash flow.

 

“This is because our committed major oleochemicals expansions in Indonesia, Malaysia, China and Europe are currently on schedule. A cash outflow of RM1.5bil will be required over the coming two years.

 

https://www.thestar.com.my/business/business-news/2023/01/24/plantation-companies-maintain-cautious-stance